Greek government plans along with Troika a “roadmap” for economy over the following three months as well as after Greece exits the Memorandum. After eight long hours of discussions, the two sides seem to be spaced apart, although the Greek government is optimistic that there is still enough time bridge the gap.
As soon as the meeting began, the lenders representatives commented on the scenarios of sweeping tax cuts by saying to the Greek Minister of Finance that: ” Greece has been on a continual spree”.
Mr. Gikas Hardouvelis replied calmly that: “Tax cuts will be made, the question is how and when”.
According to a Ministry of Finance leading agent after completing the marathon meetings:
-Primary surplus in 2014: Troika agrees that Greece achieved this year’s memorandum target. Athens believes that surplus in 2014 will exceed the 1.5% of GDP (around 1.7% according to information). Troika on the other hand doubts if this will cover part of the primary surplus of 2015 “It is a question of whether the excess this year stems from sources that will be repeated and during 2015”.
– Draft Budget for 2015: The draft will include only the tax cuts announced by the Prime Minister in Thessaloniki International Fair (decrease of emergency levy – tax reduction on heating oil, etc.). The rest will be reflected in the final draft of the budget in November.
Mr. Hardouvelis wants all the above to be included to an organized plan and not to remain as scattered ideas and leaks. So far during the meeting with Troika the plans for settlements of debts by installments were not discussed. However, Athens strongly believes that the primary surplus target which will be set for the 2015 “is possible to achieve without any further new measures”.
– “2015 without Troika”: How to set up the country’s exit from the Memorandum was an issue of discussion since day one. IMF and EU are talking of “The Day After”.
– Changes on structure: Athens believes that has covered almost 65% of the requirements, but Troika still seeks clarification.
– Interest Rates-bonds: Ministry of Finance is not worried of the interest rate rising on government bonds.